Germany VAT Calculator

For cross-border B2B sales between Germany and another EU member state, no VAT is charged on the invoice. Instead, the buyer is responsible for self-assessing and declaring the VAT in their own country under the reverse charge mechanism. Both companies' VAT ID numbers must be on the invoice.

The EU OSS simplifies VAT filing for German businesses selling B2C to other EU countries. If total EU cross-border B2C sales exceed €10,000 annually, the seller must apply the VAT rate of the customer's country. Instead of registering in each country, the seller files a single quarterly OSS return in Germany via the BZSt.

Tax-exempt ('steuerfrei') services, like medical treatments or financial transactions, do not charge VAT but also do not allow the provider to reclaim input VAT. Zero-rated supplies (0% MwSt), like exports or solar installations, allow the business to fully reclaim input VAT on related purchases.

Under German tax law, VAT is calculated and rounded to the nearest cent (half-cent rounded up). Businesses can choose between calculating VAT per individual line item or on the invoice total. However, the chosen method must be applied consistently to avoid audit discrepancies.

According to German commercial law (HGB) and tax regulations (GoBD), all VAT-related invoices, receipts, and book records must be archived digitally or physically for at least 10 years. The period begins at the end of the calendar year in which the invoice was issued.

Starting January 1, 2025, all B2B companies established in Germany must be capable of receiving structured electronic invoices (e-Rechnungen) in formats like ZUGFeRD or XRechnung. A transitional period applies for issuing them, but mandatory B2B e-invoicing will be fully phased in by 2028.

Import VAT is calculated on the customs value of the imported goods plus any customs duties and international transport costs within the EU. The rate (19% or 7%) is paid at the border, but VAT-registered businesses can reclaim it as input tax on their regular return.

Under §14 UStG, an invoice must contain either the seller's local Steuernummer or their VAT ID (USt-IdNr). If this information is missing, the invoice is legally invalid, and the business buyer cannot reclaim the input VAT from the tax office (Finanzamt).

Late submission of VAT returns in Germany can result in a late filing penalty (Verspätungszuschlag) of up to 10% of the tax due (max €25,000). Late payments incur a statutory interest penalty of 1% of the unpaid amount for each month of delay.

Yes, small businesses can voluntarily waive their Kleinunternehmer status and choose to be taxed normally. This decision binds the business for five calendar years, but it is often beneficial if the business has significant start-up costs and wants to reclaim input VAT.

Germany's standard Mehrwertsteuer (MwSt) rate is 19%. A reduced rate of 7% applies to essential goods such as food, books, newspapers, and local public transport.

Divide the gross price by 1.19 to get the net price. For example, €119 ÷ 1.19 = €100 net, meaning €19 is MwSt. For the reduced 7% rate, divide by 1.07.

The small business exemption (Kleinunternehmerregelung) was reformed on 1 January 2025: businesses stay exempt from charging MwSt if prior-year turnover was below €25,000 and current-year turnover stays below €100,000. Exempt businesses cannot reclaim input VAT on their purchases.

Under the One Stop Shop (OSS), German businesses selling B2C to other EU countries can register in Germany to handle VAT for all EU member states, once cross-border sales exceed €10,000 annually.

Both terms are used interchangeably. MwSt (Mehrwertsteuer) is the common term, while USt (Umsatzsteuer) is the official legal term. German invoices must show the VAT amount, applicable rate, and the seller's USt-IdNr (VAT identification number).

Yes. Under the Preisangabenverordnung (PAngV), all prices displayed to consumers in Germany must include MwSt. B2B pricing typically shows net amounts with MwSt listed separately.